MUMBAI: Malaysian palm oil futures rose in early trade on Friday from their lowest level in three weeks, due to concerns over sunflower oil supplies from the top-producing Black Sea region, following escalating tensions between Russia and Ukraine.
Malaysian palm oil hits three-week low
Palm oil also gained support from a rise in rival soyoil.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was up 4 ringgit, or 0.1%, at 3,856 ringgit ($893.32) a metric ton.
Fundamentals
Ukraine accused Russia on Thursday of using strategic bombers to strike a civilian grain vessel in a missile attack in Black Sea waters near NATO member Romania, escalating tensions between Moscow and the military alliance.
Dalian’s most-active soyoil contract rose 0.84%, while its palm oil contract was up 0.28%. The Chicago Board of Trade soyoil edged up 0.4%.
Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market.
The Malaysian ringgit, palm’s currency of trade, rose 0.35% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.
India’s palm oil imports in August fell more than a quarter from a month ago, primarily driven by sufficient domestic stocks and negative margins that discouraged refiners from purchasing more of the tropical oil.
Oil prices rose on Friday, extending a rally sparked by output disruptions in the US Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Source: Brecorder
